Hidden car costs highlighted in RAC survey

RAC’s 2016 Vehicle Operating Costs survey has found the overall average cost of owning and running a car has come down compared to 2015.

RAC’s Vehicle Operating Costs survey calculates the costs of running a car in WA over a five year period from new, based on driving 15,000 kilometres a year.

RAC Manager Vehicles and Fuels Alex Forrest said across the 125 vehicles surveyed this year, the average cost of running and owning a new car was $208 a week, down from the 2015 average of $214 a week.

“Purchase price and fuel costs are the most commonly considered expenses when buying a new car, but costs like depreciation, interest and servicing are not. ”

RAC Manager Vehicles and Fuels Alex Forrest

“The single biggest cost was depreciation which, on average, makes up 40 per cent of the cost of running a new car over five years,” Mr Forrest said.

“The next biggest expense for motorists is the standing on-road costs, such as stamp duty and registration, including Compulsory Third Party insurance and private insurance. If you get a loan for the full cost of the car, interest will be the third biggest expense, while fuel is in fact the fourth biggest cost factor, on average.”

The Suzuki Celerio was found to be the overall cheapest car to run again this year, having also taken out top spot in 2015.
“This year, the Celerio went below $100 per week, costing $96 per week to own and run,” Mr Forrest said.

At the other end of the scale was the Toyota Landcruiser GXL, which costs $364.27 per week.

RAC also encourages motorists to check the ANCAP Star safety rating when purchasing a vehicle.